Just follow questions below! My last name is Sorensen (its part of the problem)

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Just follow questions below! My last name is Sorensen (its part of the problem)

1. Budget. (7 points) Explain your personal budget. What works well? What do you think could be improved? Do NOT be specific about amounts of money. Just explain what your strategies are. If you don’t have a budget, think about some strategies you think would be good to implement to help you be in control of your spending. Use complete sentences and write in a way that will add value to the discussion, give ideas to others about budgeting, and help you figure out your own budget. How do you feel about budgeting? Do you think it is necessary? Why or why not?

2. Simple vs. Compound Interest. (5 points) Explain the difference between simple interest and compound interest IN YOUR OWN WORDS! Please credit whatever source you use to learn the difference. If you used the textbook, state that. If you used an online source, post the web address. If you spoke to someone who explained it to you, let us know this information. However you learn it, use your own words to describe it. Then do the sample problem assigned to you, and SHOW EVERY STEP that you use to find the future value of the given investment (5 points). If you use the calculator, explain your steps in detail. Round to the nearest cent if necessary. Do the appropriate sample problems according to your last name (each problem has two parts, simple–which is always yearly & compound–which is different depending on your problem):

Principal: $4,050

i. BISHOP: 2 years at 6% (simple & compounded yearly)

ii. BRALEY: 2 years at 2% (simple & compounded monthly)

iii. MEADOWS-BUTTS: 4 years at 6% (simple & compounded yearly)

iv. CABRAL: 30 years at 5% (simple & compounded yearly)

v. COLEMAN: 30 years at 2% (simple & compounded quarterly)

Principal: $10,000

i. COOPER: 3 years at 7% (simple & compounded yearly)

ii. CULLIPHER: 3 years at 4% (simple & compounded monthly)

iii. DOLEZAL: 15 years at 8% (simple & compounded yearly)

iv. ENGELS: 15 years at 7% (simple & compounded quarterly)

v. ESCARCEGA: 25 years at 6% (simple & compounded yearly)

vi. FELKER: 25 years at 5% (simple & compounded quarterly)

Principal: $35,000

i. FOSTER: 10 years at 7% (simple & compounded monthly)

ii. FRAZER: 15 years at 7% (simple & compounded monthly)

iii. GACHUPIN: 15 years at 6% (simple & compounded quarterly)

iv. GARCIA: 35 years at 6% (simple & compounded quarterly)

v. GUARDIOLA: 35 years at 5% (simple & compounded daily)

vi. JIMENEZ-ARACENA: 40 years at 5% (simple & compounded daily)

Principal: $150,000

i. E. JOHNSON: 15 years at 6% (simple & compounded daily)

ii. J. JOHNSON: 15 years at 4% (simple & compounded daily)

iii. McBRIDE: 30 years at 5% (simple & compounded monthly)

iv. MEJIA: 30 years at 5% (simple & compounded quarterly)

Principal: $300,000

i. MOORE: 8 years at 5% (simple & compounded yearly)

ii. RAMIREZ: 8 years at 3% (simple & compounded quarterly)

iii. REIDHEAD: 15 years at 6% (simple & compounded quarterly)

iv. ROWE: 15 years at 4% (simple & compounded monthly)

v. SNYDER: 30 years at 4% (simple & compounded monthly)

Principal: $1,000,000

i. SORENSEN: 15 years at 5% (simple & compounded yearly)

ii. SOSA: 15 years at 2% (simple & compounded quarterly)

iii. WILLIAMS: 30 years at 4% (simple & compounded monthly)

iv. ELLINGSON: 30 years at 2% (simple & compounded daily)

*If your name isn’t here, please just take one of the given situations and tweak it a bit to make a new one for yourself, and email me letting me know what you did. :o)

3. Similar Return. (5 points) Tweak your compounded investment by two of the three factors (time invested, interest rate, compound period) to get an amount that is about the same as your original future value. Explain the difference, what the thought process was for you to get it, and if you think one is better than the other.